Controlled Launch	3 Months Ended
Mar. 31, 2022
Controlled Launch [Abstract]
Controlled Launch	9. Controlled Launch In February 2021, the Company received 510(k) clearance from the U.S. FDA for its proprietary CellFX System for dermatologic procedures requiring ablation and resurfacing of the skin. In January 2021, the Company received CE marking approval for the CellFX System, which allows for marketing of the system in the EU for treatment of general dermatologic conditions, including SH, SK, and cutaneous non-genital warts. Additionally, in June 2021 the Company received Health Canada approval for the CellFX System, which allows for marketing of the system in Canada for use in dermatological procedures requiring ablation and resurfacing of the skin for the reduction, removal, and/or clearance of cellular-based benign lesions. In February 2021, the Company commenced a controlled launch of the CellFX System in the United States and European Union via its CellFX Expectations Excelled Program (the “Controlled Launch”). Subsequent to receiving Health Canada approval in June 2021, the Company also commenced its Controlled Launch in Canada. As part of the Controlled Launch, the Company selected 70 physicians and their practices to be the first physician consultants to launch the CellFX System and the associated CellFX commercial procedures into their respective markets and geographies. According to the Controlled Launch program, the Company provides and sets up a CellFX System at each physician site and provides the physician with the necessary related products and components, free of charge, to complete the requirements of the Controlled Launch. Each CellFX System and any unused component products remain the property of the Company throughout the Controlled Launch. Each physician identifies and recruits up to 40 or 50 patients, depending on the contract, for participation in the Controlled Launch, performing a CellFX procedure on each of the appropriately selected patients. Under the Controlled Launch, the physician and their patients complete evaluation surveys about their experiences with the CellFX System and provide other information helpful to the Company. Upon completion of the procedures and the survey feedback, the physician earns either credits which can be used towards the future purchase of the CellFX System or, in some jurisdictions, fair payment for their time and effort completing the paperwork required under the Controlled Launch program. Credits earned and, if applicable, any other payments earned are limited to a maximum amount dependent on the number of surveys received by the Company. Upon completion of the Controlled Launch, each physician may choose to either enter into a purchase agreement with the Company, under which the physician may use the credits earned (or other payments earned, as applicable) towards the purchase of the already-delivered CellFX System, or the physician must return the CellFX System to the Company. As patient procedures and surveys are completed under the Controlled Launch program, the Company accrues the value of the credits earned, which are recorded in accrued expenses, with a corresponding charge to sales and marketing expense. During the three-month periods ended March 31, 2022 and 2021, the Company recorded $0.3 million and $0.1 million, respectively, of sales and marketing expense in relation to the Controlled Launch. During the three-month period ended March 31, 2022, certain consultants completed the Controlled Launch and entered into purchase agreements with the Company, whereby they used their credits or other earned payments towards the purchase of a CellFX System. Accordingly, approximately $0.3 million of the accrued liability related to the Controlled Launch was relieved and recognized as revenue on a non-cash basis as a result of these purchases. See Note 10 for additional detail of revenue transactions.

Controlled Launch

3 Months Ended

Mar. 31, 2022

9. Controlled Launch

In February 2021, the Company received 510(k) clearance from the U.S. FDA for its proprietary CellFX System for dermatologic procedures requiring ablation and resurfacing of the skin. In January 2021, the Company received CE marking approval for the CellFX System, which allows for marketing of the system in the EU for treatment of general dermatologic conditions, including SH, SK, and cutaneous non-genital warts. Additionally, in June 2021 the Company received Health Canada approval for the CellFX System, which allows for marketing of the system in Canada for use in dermatological procedures requiring ablation and resurfacing of the skin for the reduction, removal, and/or clearance of cellular-based benign lesions. In February 2021, the Company commenced a controlled launch of the CellFX System in the United States and European Union via its CellFX Expectations Excelled Program (the “Controlled Launch”). Subsequent to receiving Health Canada approval in June 2021, the Company also commenced its Controlled Launch in Canada.

As part of the Controlled Launch, the Company selected 70 physicians and their practices to be the first physician consultants to launch the CellFX System and the associated CellFX commercial procedures into their respective markets and geographies. According to the Controlled Launch program, the Company provides and sets up a CellFX System at each physician site and provides the physician with the necessary related products and components, free of charge, to complete the requirements of the Controlled Launch. Each CellFX System and any unused component products remain the property of the Company throughout the Controlled Launch. Each physician identifies and recruits up to 40 or 50 patients, depending on the contract, for participation in the Controlled Launch, performing a CellFX procedure on each of the appropriately selected patients. Under the Controlled Launch, the physician and their patients complete evaluation surveys about their experiences with the CellFX System and provide other information helpful to the Company. Upon completion of the procedures and the survey feedback, the physician earns either credits which can be used towards the future purchase of the CellFX System or, in some jurisdictions, fair payment for their time and effort completing the paperwork required under the Controlled Launch program. Credits earned and, if applicable, any other payments earned are limited to a maximum amount dependent on the number of surveys received by the Company. Upon completion of the Controlled Launch, each physician may choose to either enter into a purchase agreement with the Company, under which the physician may use the credits earned (or other payments earned, as applicable) towards the purchase of the already-delivered CellFX System, or the physician must return the CellFX System to the Company.

As patient procedures and surveys are completed under the Controlled Launch program, the Company accrues the value of the credits earned, which are recorded in accrued expenses, with a corresponding charge to sales and marketing expense. During the three-month periods ended March 31, 2022 and 2021, the Company recorded $0.3 million and $0.1 million, respectively, of sales and marketing expense in relation to the Controlled Launch.

During the three-month period ended March 31, 2022, certain consultants completed the Controlled Launch and entered into purchase agreements with the Company, whereby they used their credits or other earned payments towards the purchase of a CellFX System. Accordingly, approximately $0.3 million of the accrued liability related to the Controlled Launch was relieved and recognized as revenue on a non-cash basis as a result of these purchases. See Note 10 for additional detail of revenue transactions.